MUSCAT: The Sultanate of Oman's production of crude oil and condensate oil during the month of February reached 29.7 million barrels, which translates to a daily output of 1.06 million barrels, thus maintaining the production rate witnessed in January — a trend that affirms Oman’s commitment to Opec+ output curbs designed to balance global supply and demand
The total quantities of crude oil exported in February amounted to 23.67 million barrels, or a daily average of 845 thousand barrels, an increase of 0.6 per cent compared to January 2023.
Dr Saleh bin Ali al Anbouri (pictured), Director General of the Directorate General of Exploration and Production at the Ministry of Energy and Minerals, stated the average price of Oman’s benchmark crude on the DME rose by 1.6 per cent in February 2023, compared to January 2023. The average price of Omani crude (for April delivery) amounted to $82.23 per barrel, an increase of $1.31, compared to the price (for March delivery), with the trading price ranging between $78.31 per barrel and $85.19 per barrel.
The increase is due to several reasons, the most important of which is: the continued recovery of demand for crude oil in China after lifting the restrictions imposed as a result of the Covid-19 epidemic, and Russia’s announcement of plans to reduce production by 500K barrels per day, which reflects its inability to sell all of its oil. Crude oil flows from the Turkish port of Ceyhan were disrupted by the devastating earthquake, he further explained.
Natural gas production in February amounted to 140.5 million cubic metres per day, while exports of LNG totaled around 999.3 thousand metric tonnes, undertaken in 15 shipments. Exports of natural gas liquids amounted to 16.3 K metric tons, undertaken in three shipments.
Dr Al Anbouri noted that average daily consumption of natural gas for electric power generation and water desalination plants, industrial zones, industrial projects and oil fields amounted to 143.4 million cubic metres in February. LPG output during the month amounted to 2.754 metric tonnes, and the average daily exports in the same month amounted to 1.115 metric tonnes.
Meanwhile, the Ministry launched its 2023 oil and gas bidding round for three blocks: Block 15, which is located in Al Dhahirah Governorate, Block 36 on the southeastern edge of the Empty Quarter Basin, and Block 54 in the eastern edge of the salt basin in the south of the Sultanate of Oman.
Meanwhile, natural gas and condensate production has also commenced from the Mabrouk field in Block 10, output from which will support local industries and the LNG plant. Production is expected to reach more than 0.5 billion cubic feet per day by mid-2024.
Further, with the launch of the Bisat oilfield with a production capacity of 60,000 barrels per day, OQ Group’s total share of national production will rise to 220,000 barrels of oil equivalent per day, representing about 13 per cent of the top-quartile contribution to GDP, said Dr Al Anbouri.
Also noteworthy is the inauguration of the Rima water treatment plant, built at a cost of RO 87 million. Covering an area of 25 square kilometres, the facility processes about 375,000 barrels per day of produced water, thereby saving 10 GW-hours of electricity and eliminating 48,000 tonnes of gas emissions annually, he added. — ONA
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